This listing includes AI condition scoring, neighbourhood intelligence, and market valuation data — giving you a complete picture before you visit. Compare rental yield, price per square metre, and location strength against the broader Portuguese market to assess whether this property fits your investment strategy.
5-bedroom, 3-bathroom villa of 181 m², built in 1975, energy rating D. Located Luz parish, Lagos municipality, Faro district. Property Features: The fully fenced 5,000 m² land features mature fruit trees, landscaped areas, and a unique treehouse, enhancing its outdoor leisure appeal and investment potential.
The valuation. The asking price of €775,000 sits significantly above the fair value of €569,368, representing an overpricing of €205,632 (36.1%). This indicates that the property is considered overpriced and may not attract investors seeking value.
Fair value modelled at €569,368 from 6 comparable sales in the area. Asking €775,000 sits €205,632 (36.1%) above — overpriced versus fair value.
Asking €775,000 versus the Luz, Lagos, Faro area baseline of €551,647 (€3,048/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €551,647, adjusted for condition and micro-location, gives a modelled fair value of €569,368 (€3,146/m²), a €205,632 (36.1%) gap versus the €775,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz · 1908a2 | Subject | €775,000 | €4,282 | — | 75 | 71 |
| rua Hortas da Ribeira, 14 | Active | €800,000 | €4,420 | 3.2% | 70 | 69 |
| rua Aníbal Lúcio de Azevedo | Active | €675,000 | €2,987 | 30.2% | 78 | 69 |
| Luz · 1f347e | Active | €895,000 | €3,255 | 24.0% | 75 | 72 |
| Luz · 956ac6 | Active | €1,150,000 | €2,745 | 35.9% | 74 | 72 |
| Median comp | €847,500 | €3,121 | 27.1% | 75 | 71 |
Short-term vacation rental The 5-bed villa in Luz, Lagos is currently overpriced at €775,000, well above its fair value of €569,368, presenting a significant gap of 36.1%. While the property enjoys a gross yield of 5.3% in a tourist-heavy area, the high asking price limits potential profitability, making it less attractive for short-term vacation rental investment. Long-term rental Due to its substantially inflated price compared to the fair market value, the 5-bed villa is not an optimal choice for long-term rental purposes. The economic stability is affected by seasonal employment in the area, and the combined factors suggest that potential long-term rental yields may not justify this investment. Buy-and-hold Investing in the 5-bed villa as a buy-and-hold strategy is also questionable given its 36.1% premium over fair value. With a condition rating of 79/100 and a neighborhood score of 71/100, the property does not present a compelling long-term appreciation opportunity, especially at its current price. Not ideal for: Student housing, Luxury market, Industrial investments
Economic Vulnerability The economic stability score of 65 suggests potential vulnerability to market fluctuations, which could impact rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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